Home

Taking a Financial Inventory

Step 1: How Much Monthly Income Do I Have?

Step 2: How Much Money Do I Need?

Step 3: How Can I Find Out What I Have?

Step 4: How Much Money Do I Have Overall?

Step 5: How Do I Handle. . .?

Medical Expenses and Other Bills?

Insurance?

Student Loans?

My Children's Education?

Employment/Business Ownership?

Working with Financial and Legal Advisors

Settling the Estate

Taking Control of Your Financial Future

Glossary of Financial Terms

Resources

taking a financial inventory
How Do I Handle Insurance?

There are many types of insurance. Each has its own issues when someone dies by suicide.

If your loved one had life insurance, the date your loved one’s policy was issued is an important factor in determining eligibility for the proceeds. Look for what’s called a “suicide exclusion” or “incontestability” clause in your loved one’s policy, or contact the company that issued the policy and ask about this clause. If there is such a clause in the policy, it will state how much time has to have elapsed between the date the policy was issued and the date of your loved one’s suicide before proceeds (also called “death benefits”) will be paid to you or other beneficiaries. The amount of time is set by each state. In most states, proceeds will not be paid if the date of suicide is within one or two years from the policy date. The premiums paid over the life of the policy by your loved one, however, may be returned to beneficiaries. Whether that happens depends on the terms of the particular policy.

You can expect life insurance policies that have been
in force for longer than the one- or two-year time frame to
pay the proceeds. Most insurers will automatically put the proceeds into a guaranteed interest-bearing account with check writing privileges. This can be an excellent “parking place” for the money until you are ready to decide how you want to manage it.

Also check with your loved one’s employer about possible life insurance benefits due to you. Insurance companies will require the signature of the beneficiary and a copy of the death certificate before paying benefits.

Health insurance from your loved one’s employer usually can continue to provide coverage to his or her family for up to three years at the family’s expense. Read more about this topic.

Notify your car insurance company about the death of your loved one if he or she is listed on the policy with you. Your premium will probably go down. If the suicide resulted in car damage, contact your insurer right away.

Homeowners’ insurance will not be affected.

Individual disability income insurance policies, catastrophic disease policies, and long-term care policies held by your loved one should be cancelled. Any premiums paid before his or her death should be refunded to you, if you are the spouse.

Business liability insurance should be maintained until the estate is closed. Ask the lawyer handling the estate about this type of insurance.